Resources for Business Owners
Dealing with Covid-19 Issues
BMI is providing this updated compendium of general topics as well as insights on the business acquisitions market.
Selling Your Business with an Outstanding PPP Loan
We have been asked how sellers should handle their PPP loans when discussing with potential buyers. Since the PPP loans may not be officially forgiven until after deals have closed, sellers should plan on setting aside business sale transaction proceeds equal to the PPP loan in an escrow account. See our article for more information or contact Tom Kerchner at BMI.
Selling A Business in Times of Uncertainty
Longtime M&A expert, Jane Marlowe shares thoughts on dealing with the Covid impact in a series of articles:
Planning to Sell Your Business in a Time of Uncertainty
Business Recovery & Exit Planning in Uncertain Times (Part 1)
Business Recovery and Exit Planning in Uncertain Times (Part 2)
SBA Issues Instructions for PPP Loan Forgiveness
May 18, 2020: The Small Business Administration has issued the application and instructions for businesses to apply for PPP loan forgiveness. The application is to be completed by the borrower and submitted to the lender.
PPP Needs Certification
On April 23 the Treasury Department issued FAQ #31 stating borrowers must establish a need for the PPP loan. “Borrowers must make this certification in good faith, taking into account their current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business.” For more info see the Small Business Administrations PPP Loans FAQ’s:
Employer Issues
A comprehensive summary of employee issues and questions arising from Covid-19. Including:
- Employees suspected of having Covid-19
- Communication Limitations
- Pay for employees staying home with the virus
- And more. Visit the link below….
Paycheck Protection Program Loan Information:
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
- Who can apply
- Loan Forgiveness
- FAQ for Borrowers
- Visit the link below….
https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program
Paycheck Protection Funding Increased April 22, 2020:
CARES Act and Small Businesses
Excellent summary – note the first round of funding for PPP has been exhausted. New funds were approved on April . See Berkeley Law – https://www.law.berkeley.edu/research/business/cares-act-and-small-businesses/
Net Operating Loss’s(NOL):
The Cares Act opened up opportunities for companies with NOL’s. See link below from Pepper Law: